OVIn-erge (Pound all unt costs to the nearest one-tenth of one cent) (b) Indicate where the inventory costs that were calculated in this exercise are different from the ones in E8-18 and explain the possible reasons why (LO 6, E8-20 Lower of Cost and Net Realizable Value, Periodic Method-Journal Entries) As a result of its anmual 8, 12) inventory count, Tarweed Corp. determined its ending inventory at cost and at lower of cost and net realizable value at December 31, 2016, and December 31, 2017. This information is as follows: Cost $321.000 Lower of Cost and NRV $283,250 Dec. 31, 2016 Dec. 31, 2017 385,000 351,250 Prepare the journal entries required at December 31,2016 and 2017, assuming that the inventory is recorded direcly at the lower of cost and net realizable value and that a periodic inventory system is used. Assume that cost was lower than NRV at December 31,2015 Prepare the same entries assuming that the inventory is recorded at cost and an allowance account is adjusted each year end under a periodic system. What would be the effect on Income under both methods? How would the Statement of Financial Position reflect these transactions? a) b) c) d) OVIn-erge (Pound all unt costs to the nearest one-tenth of one cent) (b) Indicate where the inventory costs that were calculated in this exercise are different from the ones in E8-18 and explain the possible reasons why (LO 6, E8-20 Lower of Cost and Net Realizable Value, Periodic Method-Journal Entries) As a result of its anmual 8, 12) inventory count, Tarweed Corp. determined its ending inventory at cost and at lower of cost and net realizable value at December 31, 2016, and December 31, 2017. This information is as follows: Cost $321.000 Lower of Cost and NRV $283,250 Dec. 31, 2016 Dec. 31, 2017 385,000 351,250 Prepare the journal entries required at December 31,2016 and 2017, assuming that the inventory is recorded direcly at the lower of cost and net realizable value and that a periodic inventory system is used. Assume that cost was lower than NRV at December 31,2015 Prepare the same entries assuming that the inventory is recorded at cost and an allowance account is adjusted each year end under a periodic system. What would be the effect on Income under both methods? How would the Statement of Financial Position reflect these transactions? a) b) c) d)